A Review Quiz On Banking Process And Functions!
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Banking means accepting, securing and controlling the finances of individuals and enterprises. A bank is a financial institution which is authorized to collect deposits and offer loans. They provide various financial loans, offers and schemes. But, how much do you really know about banking? This quiz has been designed to test your knowledge about the Banking Process and Functions. So, let's try out the quiz. All the best!
- 1.You fill this out when you open a checking account as an anti-fraud precaution.
- A.
Register
- B.
Transaction protection
- C.
Signature Card
- D.
Overdraft transaction
- 2.What do banks do with the cash we deposit into our accounts?
- A.
They leave it in boxes labeled with our names.
- B.
They invest it in order to make themselves money.
- C.
They pass it on to government offices for safekeeping.
- 3.Instructions to the bank to shifts funds from your account to that of the person or firm whose name is written in the Pay to the Order of line.
- A.
Checks
- B.
Fiat Money
- C.
Commodity Money
- 4.How are banks good for the economy?
- A.
They hold money instead of people keeping it stuffed under their mattresses.
- B.
They generate money by providing loans, and this causes a healthy economy .
- C.
They mint new money all the time.
- 5.Which body determines the amount that banks can lend?
- A.
The Senate
- B.
The U.S. Treasury
- C.
The Federal Reserve
- 6.What does "a run on the bank" refer to?
- A.
When everyone wants their money back from the bank at the same time
- B.
When everyone runs to deposit their checks at the same time in the same bank
- C.
When bank shareholders converge on the bank in a fast sprint
- 7.If the bank is insured, then your money will be safeguarded. Who does it need to be insured by?
- A.
The Federal Deposit Insurance Corporation (FDIC)
- B.
Nationwide Mutual Insurance Company
- C.
American International Group (AIG)
- 8.Why were commercial banks initially set up?
- A.
To solve the problems of the private banking system
- B.
To provide an alternative banking system to the earlier kind of banks
- C.
To offer banking services for businesses
- 9.What market were savings banks intended to serve?
- A.
Low-income workers
- B.
High-income earners
- C.
Everybody, as long as they had some form of income
- 10.In what way are banks like any other business?
- A.
They hire salaried workers and pay taxes.
- B.
They're out to make money, like businesses, only the product they "sell" is money.
- C.
They have open hours like other businesses and are closed on weekends.
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